Question

The cost of a new car is 5,40,000. In the first year, the value of car depreciates by 20% and in
subsequent years, the depreciation is 10%. Calculate the total depreciation in its value at the end of 3 years.​

Answer 1

Answer:

3,499,200,000

Step-by-step explanation:

p = p. (1 + R/100 ) ^T

p = 540000 ( 1 + -10/100 )^2

p= 540000 × 9×9/10×10

p= 437,400,000

After the third year, let the price be P

′

P' = P ( 1 + R'/100 ) ^T

P' = 437,400,000 ( 1 + -20/100 )^1

P' = 437,400,000 × 80 / 100

P' = 349,920,000

Thus, the car will cost Rs 349,920,000 after three years.